Urgent Reminder! UAE CORPORATE TAX DEADLINE FOR INDIVIDUALS to Avoid AED 10,000 Penalty

The Federal Tax Authority (FTA) has issued an urgent reminder to natural persons (individuals) conducting business activities in the UAE to register for Corporate Tax before the deadline of March 31, 2025.  This applies to individuals whose business turnover exceeds AED 1 million in the 2024 calendar year, or any subsequent year.

The FTA is emphasizing the importance of timely registration to avoid incurring a late registration penalty of AED 10,000.  This call to action underscores the FTA’s commitment to ensuring compliance with the UAE’s Corporate Tax regime, which came into effect on June 1, 2023.  

Key points:

The FTA is encouraging all eligible individuals to familiarize themselves with the Corporate Tax regulations and complete their registration well in advance of the deadline.  This proactive approach will allow businesses to smoothly integrate into the new tax system and avoid any last-minute complications.

Disclaimer:  Every effort has been made to avoid errors or omissions in this material. In spite of this, errors may creep in. Any mistake, error or discrepancy noted may be brought to our notice which shall be taken care of in the next edition. In no event the author shall be liable for any direct, indirect, special or incidental damage resulting from or arising out of or in connection with the use of this information.

Corporate Tax Penalties in Abu Dhabi: 14% Monthly Charge for Late Payments

Abu Dhabi: The Federal Tax Authority (FTA) has declared that businesses that neglect to remit corporate tax by the due date will incur a monthly penalty of 14 percent per annum.

This penalty is applied to the amount of unpaid tax, beginning from the day following the payment deadline and continuing to accrue on the same date each month thereafter.

As per the FTA’s announcement, payments must be made no later than nine months after the conclusion of the designated tax period, as stipulated in Federal Decree-Law No. 47 of 2022 regarding Corporate Tax and its subsequent amendments.